Car dealers and electric vehicles, it’s not quite a match made in heaven. If 2023 was anything to go by, the split was stark – a year marked by a staunch anti-EV sales revolt. Resistance came in several ways, one of which was a letter nearly 4,000 dealers signed a petition calling for President Biden to “slow down” regulations favoring the production and sale of electric cars. Another joined in blatant lies to customers about the capabilities of EVs to force them to buy gas cars instead.
But 2024 could open a new chapter for American retailers and give them an opportunity to come clean. Fresh news out of Washington DC suggests that dealers may be willing to embrace EVs (or at least try to). More than 7,000 U.S. auto dealers have registered with the IRS to provide tax credits to customers at the point of sale, the U.S. Treasury Department said Friday. Dealers seem suddenly open to embracing this change in droves.
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The number of dealers who have signed up to offer point-of-sale credit to customers could be as high as 7,000, according to the National Automobile Dealers Association (NADA). registration that has not yet been approved by the IRS,” said a NADA spokesperson. Automotive news. NADA data for 2023 shows 17,000 franchised retailers in the US
Previously, buyers had to wait until filing their tax return to claim the federal clean vehicle credit. This meant that the credit would be received several months after the purchase. The new leadership under the Inflation Reduction Act accelerates this process. From January 1, 2024, buyers can take home an EV after paying a reduced amount upfront, eliminating the need to wait for a refund. (This is theoretical and we’ll have to wait and see how it plays out in the real world.)
The year-long skullduggery and downplaying of the vitality of electric cars was rooted in some real concerns. Investing in charging infrastructure and training sales staff requires a significant financial commitment. Not to mention lower sales commissions and after-sales profits. Because Electric cars need less maintenance due to their fewer moving parts. No oil changes and no need to change spark plugs or fuel injectors. Despite these valid concerns, the signs are clear: Scientific consensus on the effects of global warming calls for the unquestioned adoption of EVs, which many American retailers have vehemently opposed.
Claiming that “enthusiasm (for EVs) has stalled” was the highlight of the letter to Biden. The new IRS guidance could uplift dealers’ morale. Now they have a clear reason to attract customers. It could help them clear out their accumulating EV inventory, make room for new batches, and in turn boost production that has taken a backseat for some automakers. It’s a red carpet to take EVs seriously, end the snobbery, and give EPA emission targets due attention.
For now, any positive result is of course speculation. And one big red wave in next year’s election could undo years of progress. But if the formula works, all the fossil fuel-champion Republican candidates (and their eventual presidential nominee) will have one of the biggest reasons to hurl vitriol at electric cars ripped from their books.
